(Sharecast News) - Price comparison website Moneysupermarket.com said on Thursday that its TravelSupermarket business (TSM) will combined with Icelolly.com to enable "stronger and broader travel comparison services across both brands".
Icelolly.com is an online package holidays travel intermediary specialising in price comparison and deals. "Both brands will be retained, with each benefiting from revenue diversification, shared commercial expertise and greater audience reach," the company said.
The transaction is structured as a cash-free exchange with both TSM and Icelolly entering the combined business on a cash and debt-free basis. Moneysupermarket will own 62% of the combined entity and will have board control, with the remaining equity held by Palatine Private Equity, which is the current owner of Icelolly.com, and the management team.
The company said no new capital is being invested into the business, although it has agreed a loan note of £4m to fund working capital requirements.
In 2019 the combined revenue for the two brands was around £30m, with 2020 performance significantly impacted by the Covid-19 pandemic.
Moneysupermarket chief executive Peter Duffy said: "The combination of TravelSupermarket and Icelolly.com will benefit customers of both brands with a richer and more diversified offer as the travel and holiday markets recover.
"As well as unlocking commercial benefits, the creation of a standalone entity under a dedicated management team will give us greater flexibility going forwards to maximise shareholder returns."
Moneysupermarket.Com (MONY)3 May 2024 13:37